Dynamic Regulation Via Contingent Capital Review of Banking and Financial Law, Vol. 36, 2017 16 Pages Posted: Wulf A. Kaal University of St. Thomas, Minnesota – School of Law Date Written: April 24, 2017 Abstract Contingent capital securities are a largely overlooked dynamic regulatory mechanism. This essay evaluates the use of contingent capital securities in […]
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University of St. Thomas Law Journal Spring Symposium Friday, April 11, 2014, Minneapolis, MN co-sponsored by the Holloran Center for Ethical Leadership in the Professions 7 hours CLE pending approval – REGISTER NOW SPEAKERS Steven L. Schwarcz, keynote Duke University School of Law Roberta Romano Yale Law School Erik F. Gerding University of Colorado Law School Kimberly […]
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Presentations at the Canadian Law and Economics Association annual meeting on September 28, 2013 in Toronto. Dynamic Regulation of the Financial Services Industry Wulf A. Kaal University of St. Thomas, Minnesota – School of Law 2013 Wake Forest Law Review, 2014, Forthcoming U of St. Thomas (Minnesota) Legal Studies Research Paper No. 13-24 Abstract: Governance adjustments […]
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Despite the role of collateralized debt obligations (CDOs) in the financial crisis of 2007-08, CDOs and other high risk investment products may soon be available again and are likely to proliferate. The WSJ reports that J.P. Morgan Chase and Morgan Stanley bankers are assembling synthetic CDOs to satisfy demand for structured products by investors who seek high […]
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Governance adjustments via stable rules in reaction to financial crises are inevitably followed by relaxation, revision, and retraction. The economic conditions and the corresponding requirements for optimal and stable rules are constantly evolving, suggesting that a different set of rules could be optimal. Despite the risk of future crises, anticipation of future developments and preemption […]
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UBS is the latest bank to issue a debt bonus in the form of contingent capital notes (CoCos) to its top executives. The UBS issuance follows similar programs set up by Barclays and Credit Suisse. This emerging trend has many beneficial implications but debt bonus programs for executives can be further optimized. Banks’ debt based […]
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The FT reports (front page 2/5/2013) that UBS is issuing contingent capital notes (CoCos) to its top 6500 executives. The debt bonus in the form of CoCos will be written down to zero should the bank’s regulatory capital fall below 7 per cent or in the case of a “non-viability” loss. As I have demonstrated in several articles, hedge funds were […]
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